Bank of Kigali (BK) officially launched its agency banking service as part of its initiative to extend financial services to the unbanked and under banked population.

"Agency banking is a prime example of our banking strategy to enable customers carry out transactions in their communities in the same way as they would have in our branch location,” James Gatera, CEO of BK, said.

He said this during the launch of the service at Nyirangarama, a major trading centre in Rulindo District, Northern Province. 

"Through the platform, BK’s agents will perform cash transactions and open accounts for new customers as well as process applications for microloans,” Gatera said, adding that this will help citizens access efficient banking services conveniently in their neighbourhood.

Aime Bosenibamwe, Governor of Northern Province, said that the innovation comes at a time when there is need to reduce the number of people in the country without bank accounts.

"Rwandans should embrace banking as a saving tool to secure their future livelihoods,” Bosenibamwe said.  

"BK’s new service  will come in handy to the bank’s clients especially where the bank has no physical presence.” 

Jean Claude Rubango, a customer with Bank of Kigali said that the bank’s agents should be reliable in order to win the trust of the targeted unbanked Rwandans. 

He also requested BK to look into increasing the minimum deposits required by agencies through agency banking.

"We are sometimes limited on the amount of money we can deposit at BK agencies which in most cases is not beyond Rwf1.5million. I wish this could be increased to at least Rwf3million,” Rubango said.

According to central bank statistics, Rwanda targets to increase the banked population to 80 per cent by 2020 from a paltry 21 per cent currently with access to formal banking services.

This is complimented by 26 per cent who have access to informal banking facilities.  

Gatera also noted that BK has since October 2012 registered over 2000 new current account customers with total deposits and withdraws amounting to Rwf6.8billion and Rwf360millon respectively. 

Agency banking services are also used by Kenya Commercial Bank and Equity Bank. BK is ranked number one in assets with its total assets representing approximately 32.4% of all banking assets in the country as of 2011.